News

World
bank Casts Dark Shadow over G8

Friends of the Earth
International
La Via Campesina
Focus on the Global Southl

WORLD BANK CASTS
ITS DARK SHADOW OVER G8

HOKKAIDO, Japan July 7, 2008 - The
World Bank is officially launching its "climate investment
funds" backed by Japan, the US and the UK during the G8 meeting
in Hokkaido, Japan, 7-9 July.

The funds - which have already been
criticised by developing country governments - will be used to finance
so-called clean technology including coal and agrofuels, loans for
adapting to climate change and to set up carbon trading schemes
that allow industrialised countries to buy their way out of emission
reductions.

Friends of the Earth International
Chair Meena Raman said:

"The World Bank continues to
finance dirty industries and is now trying to recast itself as the
saviour of the planet. If Fukuda, Bush and Brown have their way,
billions in taxpayers' money would be used to push developing countries
further into debt, undermine UN climate negotiations and threaten
Indigenous Peoples' land rights."

Peasant farmers, environmentalists,
workers and activists are protesting and speaking out during the
G8 against the World Bank. Though the Bank now asserts a desire
to be a leader in tackling climate change, the majority of the World
Bank's carbon finance portfolio has been channeled towards polluting
industries, it has financed industrial logging and its support for
coal-fired and other fossil-based power generation is on the increase.

The World Bank has a notorious track
record for pushing loans for industrial and agricultural policies
that have increased poverty, indebtedness, unemployment and environmental
damage.

Focus on the Global South's Walden
Bello said:

"If G8 countries are serious about
tackling climate change they should not waste their money on schemes
that will do nothing to solve the climate crisis. The World Bank
itself is in a deep crisis and is trying to boost its rock-bottom
ratings by hijacking the climate bandwagon. It is totally unjust
that developing countries should be coerced to take out loans to
deal with climate problems that they did not create."

The climate negotiations in Bali
last December opened the door for the World Bank to play a much
more prominent role and this threatens to undermine the integrity
of a post-2012 climate deal. During climate talks in Bonn last month,
the G77 + China as well as more than 120 civil society organisations
released statements opposing the World Bank's proposed funds.

La Via Campesina's Henry Saragih said:

"The current food and climate
crises are mainly caused by unsustainable economic policies that
have been ruthlessly imposed by the G8, World Bank, the WTO and
transnational corporations. These policies are destroying local
food production and livelihoods. If we are going to cool out planet
and feed the world, we must promote real solutions such as sustainable
family farming and peoples' food sovereignty."

During the G8, La Via Campesina, Focus
on the Global South, Friends of the Earth International and other
social movements and civil society organisations are highlighting
how corporate-driven policies being pushed by G8 nations are having
serious negative impacts on communities and their environment around
the world.